Fight Credit Card Fraud

In the News: “Philadelphia, Pennsylvania – A Philadelphia woman was sentenced to prison for purchasing and returning store merchandise with stolen credit cards at stores in New Jersey. Medina Marsh, 22, 1400 block of West Jerome Street, plead guilty to criminal conspiracy to commit access device fraud and was sentenced to 8 -23 months in prison with three years’ probation, according to court papers. Marsh was also ordered to pay $7,000 in restitution.”

This scenario occurs everyday, all over America, and throughout the world. It’s even scarier when the thief isn’t caught and gets away with their loot.

How Can This Happen?

Credit card fraud comes with many faces and many names. There is no one single form of fraud and there is no one single method of committing the fraud. Each day, criminals get more and more sophisticated in their efforts. The following list represents the most common forms of fraud:

• Stolen cards – the card is taken and as much as possible is purchased while the card still works
• Compromised accounts – account numbers and cardholder information is accessed physically or electronically.
• Account takeover / Identity theft – Information is gathered about the cardholder and then they represent themselves to be the cardholder to get additional cards, to change addresses for statements and other actions without the card holder’s knowledge.
• Application fraud – Stolen information is used to set up new accounts.
• Skimming – thieves photocopy card or run it through a “skimming” device to gain info.
• Carding – running a small transaction on the internet with stolen info to see if it works.
• BIN attack – using a good card number to generate other card numbers close to it in sequence and incorporating the expiration date on the good card.

20 Easy Ways to Fight Against Credit Card Fraud:

1. Try not to let the credit card out of sight whenever possible.
2. Don’t give out account numbers over the phone unless the call was placed (not received) and the company is reputable.
3. Never answer emails that request credit card info – and never respond to emails that request verification of personal information.
4. Never provide credit card information to a website that is not a “Secure site”.
5. Sign credit cards upon receipt.
6. Shred all unfilled credit card applications.
7. Never write a PIN number on a credit card.
8. Never leave credit cards or receipts lying around.
9. Shield credit card numbers so others can’t copy or capture them on a cell phone camera.
10. Carry only needed credit cards.
11. Open card statements promptly, check the charges and reconcile the account. Save receipts to compare with the statement.
12. Report unknown or unusual charges immediately.
13. Always personally void incorrect receipts.
14. Always draw a line through blank portions of a receipt where additional charges could be added.
15. Never sign blank credit card receipts.
16. If a carbon sheet is used in a credit card transaction, destroy it immediately.
17. Never write credit card account numbers where anyone will see them.
18. Try to carry credit cards separately from a wallet.
19. Never lend a credit card to anyone else.
20. When moving, notify credit card issuers in advance of the change of address.

He Who Hesitates … is Lost

If there is a suspicion of credit card fraud, contact the issuers immediately. Credit card companies have toll-free numbers and 24-hour service. Under U.S. law, once a consumer reports the loss or theft of a credit card, they are not responsible for unauthorized charges. The maximum liability under federal law is $50 per credit card and most credit card issuers will waive the fee for good customers.

Pay Attention – Don’t Pay for Fraud

Many credit cardholders take the plastic in their pocket for granted. They sometimes treat it with less respect than it is due. Giving the data to children, to less-than-diligent merchants, or even having it stolen through no fault of the cardholder can all result in the same catastrophe – loss of credit, destruction of a credit rating, and months or years of work to rebuild a credit profile.